Health systems are starting to see a gradual and sustained financial recovery, with hospitals maintaining a median operating margin of 4.1% in July compared to past years. While some positive signs include increasing patient volumes and decreasing length of stay, hospitals are still facing cost pressures from rising labor and non-labor expenses, as well as challenges with payer rates and supply costs. The financial performance gap between successful and struggling hospitals is widening, with for-profit systems performing better than nonprofits. To improve finances, struggling hospitals need to focus on operational efficiency, negotiate better payer rates, and control costs.
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How Have Hospitals Fared Financially So Far in 2024?
